Shiba Inu (SHIB) broke above a descending trendline that had capped price action since mid-May, pushing the token past $0.0000042 on Tuesday. Exchange netflow data from CryptoQuant shows five consecutive days of net outflows starting July 17, a signal that investors are moving SHIB into private wallets and reducing available selling pressure. Derivatives data leans bullish too, with a long-to-short ratio of 1.02 and a positive funding rate of 0.0103% as of Tuesday.
Exchange Outflows Highlight Reduced Selling Pressure
The five-day streak of net outflows is the longest such run for SHIB this month. When tokens leave exchanges, it typically means holders are opting for self-custody rather than preparing to sell. That dynamic helps support price action, especially after a period of decline. The trendline break gives SHIB room to run, but the real test is whether outflows continue.
Derivatives Data Points to Bullish Sentiment
Open interest across SHIB futures is steady, but the long-to-short ratio of 1.02 indicates more traders are positioned for gains than for losses. The positive funding rate means longs are paying shorts a small premium, a sign of conviction. That's a shift from the mixed readings seen in early July. If funding rates stay positive, it adds to the case that momentum is building.
Next Hurdle: $0.0000045 Resistance and the 50-Day EMA
The next major resistance sits around $0.0000045, where the 50-day exponential moving average also converges. The relative strength index is at 54 and climbing toward 60, while the MACD has produced a bullish crossover with expanding green histogram bars. Both indicators suggest upward momentum, but they're not overbought yet. If the rally loses steam, SHIB could retreat toward its yearly low near $0.0000040.
